(R.A.

9160 Act of 2001)

 WHAT IS MONEY LAUNDERING?

• Is an act, or series or combination of acts whereby proceeds of unlawful activity, whether in

cash, property or other assets, are converted, concealed or disguised to make them appear to have
originated from legitimate sources.

• It is a scheme whereby proceeds of an unlawful activity are transacted or attempted to be

transacted whereby making them appear to have originated from lawful/legitimate sources.
 UNLAWFUL ACTIVITIES UNDER THE AMLA

Kidnapping for ransom Robbery and extortion

Swindling Securities fraud
Drug offenses Jueteng and masiao
Electronic commerce crimes Felonies or offenses of similar nature punishable
Graft and corrupt practices; under penal laws of other countries

Hijacking, destructive arson and murder Piracy on the high seas

Plunder Qualified theft

 HOW IS MONEY LAUNDERED THROUGH
FINANCIAL SYSTEM?

Placement Layering

• Involves initial placement or introduction of • Series of financial transactions during which

the illegal funds into the financial system. dirty money passed through a series of
procedures, putting layer upon layer of
persons and financial activities into the
• Financial institutions are usually used at this laundering process.
point.
• Ex. Wire transfers, use of shell corporations.
 INTEGRATION

• The money is once again made available to the criminal with occupational and geographic origin
obscured or concealed . The laundered funds are now integrated back into the legitimate
economy through the purchase of properties, business and other investments.
 WHY IS MONEY LAUNDERING A PROBLEM?

• It allows criminals to preserve and enjoy the proceeds of their crimes ,thus providing them with
the incentives and the means to continue their illegal activities .
• At the same time, it provides them the opportunity to appear in public like legitimate
entrepreneurs.
• Organize crime, through money laundering, is known to have the capacity to destabilize
governments and undermine their financial systems . Hence, a threat to national security.
 WHAT ARE THE COVERED INSTITUTIONS
UNDER AMLA?
• Banks, offshore banking units, quasi-banks, trust entities, non-stock savings and loan
associations, pawnshops and all other institutions including their subsidiaries and affiliates
supervised and/or regulated by the Bangko Sentral ng Pilipinas (BSP).
• Insurance companies. holding companies and all other institutions supervised by the Insurance
Commission (IC)
• Securities dealers, brokers, pre-need companies, foreign exchange corporations, investment
houses, trading advisers, as well as other entities supervised or regulated by the Securities and
Exchange Commissions (SEC).
 KNOW YOUR CUSTOMER RULE (KYC)

• Established and record the true identity of their clients based on official documents.
• In case of individual clients, maintain a system of verifying the true identity of their clients.
• Corporate clients, require a system verifying their legal existence and organizational structure, as
well as authority and identification of all person purporting to act in their behalf.
• Establish appropriate systems and methods based on internationally compliant standards and
adequate internal controls for verifying and recording the true and full identity of their
customers.
 COVERED TRANSACTIONS

• Transactions in cash or other equivalent monetary instruments involving a total

amount in excess of Php 500,000.00 within one (1) business day
 SUSPICIOUS TRANSACTIONS
• Regardless of the amount –
• There is no underlying legal or trade obligation, purpose or economic justification;
• Client is not properly identified;
• Amount involved is not commensurate with the business or financial capacity of the client;
• Client’s transaction is structured in order to avoid being subject of reporting requirements;
• Any circumstance relating to the transaction which is observed to deviate from profile of the client
and/or the client’s past transactions with covered institutions;
• Transaction is unlawful activity;
• Transactions analogous to the foregoing.
REPORTING REQUIREMENTS

• Covered institutions shall report to the AMLC all covered

transactions and suspicious transactions within five (5)
working days from occurrence thereof – unless the supervision
authority (BSP, SEC and IC) prescribes a longer period not
exceeding ten (10) working days.

• Should a transaction be determined to be both a covered

transaction and suspicious transaction, it shall be reported as
suspicious transaction.
HOW IS REPORTING DONE

• The reports on covered and/or suspicious transactions

shall be accomplished in the prescribed formats and
submitted within five (5) business days from occurrence
of the transactions in a secured manner to the AMLC in
electronic form either via diskettes, leased lines or
through internet facilities.
• The same should be submitted to the AMLC Department
of SEC
THE END